Recent Bank Bailouts - Lessons to Learn When Patience is a Virtue

Abstract

Most recent bank bailouts lessons from a financial and economic policy perspective turn to be politicized. This paper keeps the focus on the effective implications of the most recent bank bailouts in the Western economy model. The common share of responsibility and bank recovery as target becomes null despite the real motives of the ongoing credit crisis. However there are some common issues shared by all these recent bank and financial institutions bailouts. Most of them relate to: global interconnections, economic downturn, liquidity boost, efficiency recovery, evade social costs, new opportunities for M&A, new risk management applications, oportunistic investment behaviour and patience.